A.M. Best Assigns Rating to Jefferson-Pilot's Funding Agreement-Backed Securities Program.

OLDWICK, N.J. -- A.M. Best Co. has assigned a rating of "aa+" to the funding agreement-backed securities (FABS) program established by Jefferson-Pilot Life Insurance Company (JP Life), a wholly-owned subsidiary of Jefferson-Pilot Corporation (Jefferson-Pilot) (NYSE: JP) (both domiciled in Greensboro, NC). A.M. Best has also assigned a debt rating of "aa+" to the outstanding notes issued under the program. Both ratings have a stable outlook.

In second quarter 2005, Jefferson-Pilot established a $1 billion global debt issuance program known as Jefferson-Pilot Life Funding Trust I (JPFT) (Delaware). This program is intended to initiate Jefferson-Pilot's entry into the institutional spread-based marketplace as part of its Annuity and Investment Products segment. The program's structure consists of JP Life issuing funding agreements to JPFT, which in turn issues medium-term notes to institutional investors, which are secured by the aforementioned funding agreements. Pursuant to North Carolina insurance law, claims with respect to payments of principal and interest under each funding agreement are considered to rank pari passu with the claims of policyholders. Based on A.M. Best's analysis of the FABS structure utilized by Jefferson-Pilot, the program and notes will carry JP Life's issuer credit rating (ICR) of "aa+." In assigning the above ICR, A.M. Best believes that all investors in the notes are exposed to the inherent credit, liquidity and business risks of the sponsoring insurance company, JP Life.

The note proceeds will be utilized to refine Jefferson-Pilot's asset/liability management resulting from elevated surrenders associated with its multi-year guaranteed annuity (MYGA) products. At the time the FABS were issued, Jefferson-Pilot rededicated bonds that had been backing the surrendering MYGA products to the FABS program. The company intends to issue FABS on an opportunistic basis to supplement spread income. To date, JPFT has issued $300 million of floating rate notes.

Jefferson-Pilot's ratings reflect its consistently strong earnings, conservative financial management, ample fixed charge coverage, sound risk-adjusted capitalization and high quality investment portfolio. Partially offsetting these strengths is the challenge of sustaining revenue and earnings growth in its core individual life and annuity businesses in an increasingly competitive environment, managing operational risks inherent to the group business and counteracting spread pressure caused by the low interest rate environment.

The following debt rating has been assigned with a stable outlook:

Jefferson-Pilot Life Funding Trust I-- "aa+" program rating

--"aa+" on $300 million floating rate secured notes, due 2008

Issuer credit ratings of "aa+" have been assigned with a stable outlook to the following subsidiaries of Jefferson-Pilot Corporation:

--Jefferson-Pilot Life Insurance Company

--Jefferson Pilot Financial Insurance Company

--Jefferson Pilot LifeAmerica Insurance Company

For Best's Debt Ratings, all other Best's Ratings, an overview of the rating process and rating methodologies, please visit http://www.ambest.com/ratings.

A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at http://www.ambest.com.